CASE STUDY REVIEW: Read the case below and comment what you have learnt from the case.

The termination and cancellation of the contract may occur when either

party puts an end to the contract because of the breach of another

party. Once a contract has been terminated the obligations binding both

parties no longer exist but the ones prior to the breach are still

compulsory (Legal Information Institute, 1992). In this case, Jeremy who

purchased a car and signed a contract promising to pay $200 every month

until the car is fully paid canceled his contract with Smooth Sales

Used Cars. He wanted to give back the car and get his money back.

According to the Uniform Commercial Code Article 2-106 (3 and 4), Jeremy

can give back his car and discontinue his monthly payment of $200 to

Smooth Sales Used Cars but he can no longer get his money back because

of previous obligations prior to his breach of contract is still

mandatory. Since he is underaged and a minor, technically he cannot

acquire a transaction with the car dealer shop but this was neglected by

the company thus remedies for such situation is, the company pays back

Jeremys initial down payment because of its failure to restrict sales

to a minor but they keep the monthly payments from Jeremy prior to the

cancellation of the contract because the canceling party also retains

any remedy for breach of the whole contract or any unperformed

balance(Legal Information Institute, 1992). Legal matters may arise in

the negligence of the car company in transacting with a minor. Jeremy

can site that his transaction with Smooth Sales Used Cars was invalid

since technically he is not of legal age. This may give rise to a legal

suit against the company. On the other hand, Jeremy can also be blamed

since he knew he was not of age in transacting. The act of his contract

cancellation presents a breach and he is liable to all obligations

following such breach. Remedies of settling such a case should be agreed

upon by both parties.